The Niger Delta Power Holding Company Plc (NDPHC) aims to commercialise approximately 200 megawatts (MW) of its current 2,000 MW of stranded electricity by the end of this year.
This move, announced by Managing Director Jennifer Adighije during a visit to the newly established Nigerian Independent System Operator (NISO), involves signing new Power Purchase Agreements (PPAs) with eligible buyers and traders.
Adighije explained that these agreements, currently awaiting regulatory approval, are part of a broader strategy to unlock unused generation capacity, improve cash flow, and ensure the long-term financial viability of the government-owned power generation company.
Addressing Market Challenges and Seeking Support
The NDPHC has previously expressed concerns about the low uptake of electricity by distribution companies, which has significantly impacted its operations.
Adighije emphasised that with improved mechanical availability of their plants, the NDPHC can now significantly boost the commercialisation of its stranded electricity.
She noted that the new Electricity Act empowers them to enter into bilateral agreements with reliable customers, off-takers, and traders, with several PPAs already signed and awaiting approval from the Nigerian Electricity Regulatory Commission (NERC).
Adighije highlighted that the recent improvements in plant availability, including the revival of key assets like the Omotosho and Alaoji power plants, position the company to meet higher demands once regulatory clearance is received.
She appealed to NISO for support in achieving better dispatch levels, especially given NDPHC’s lack of a formal PPA with the Nigeria Bulk Electricity Trading Plc (NBET). Without stable off-take arrangements, much of NDPHC’s available capacity remains underutilised.
NDPHC: Financial Stability
The NDPHC currently only earns about 30% of its invoiced amounts, leaving it heavily owed.
Adighije stressed that improving cash flow through these new commercial transactions will enable the company to meet all its obligations to partners and stakeholders.
The visit also aimed to establish and strengthen a working relationship with NISO’s new management.
Adighije underscored NDPHC’s pivotal role as the “backbone of the power sector” as a government-owned generation utility.
She called for a nuanced understanding from NISO regarding the bureaucratic limitations faced by public power firms, particularly in procurement and financial approvals.
Additionally, she urged NISO to consider NDPHC’s significant contributions to Nigeria’s transmission infrastructure when issuing directives or enforcing compliance, emphasising the need for regulatory fairness.
